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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund

A scheme has net assets of Rs 530 crore after all liabilities and expenses, and 20 crore units outstanding. An investor holds 4,000 units. What is the value of the investor's holding at the NAV?

The NAV is Rs 530 crore divided by 20 crore units, which equals Rs 26.50 per unit. Multiplying by the investor's 4,000 units gives a holding value of Rs 1,06,000. NAV is net assets after liabilities divided by units outstanding.

  1. ARs 1,06,000Correct
  2. BRs 1,00,000
  3. CRs 1,32,500
  4. DRs 2,12,000

Explanation

NAV = Rs 530 crore / 20 crore units = Rs 26.50 per unit. Holding value = 4,000 x 26.50 = Rs 1,06,000. Rs 1,32,500 comes from wrongly dividing by 16 crore units, and Rs 2,12,000 results from using NAV of Rs 53.

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